Leonardo (LDO) Q2 2025 earnings summary

Executive summary

• Orders rose 9.7% year-over-year to €11.2 billion, revenues up 12.9% to €8.9 billion, and EBITA up 15% to €581 million in the first half of 2025, despite the sale of the UAS business.

• Free operating cash flow improved 19% year-over-year to -€408 million, and net debt reduced by 27.6% to €2.17 billion.

• Strong commercial performance across all divisions, especially in defense electronics, helicopters, and aeronautics, supported by joint ventures and M&A in cybersecurity and land platforms.

• Strategic initiatives included the launch of the Capacity Boost Program, major joint ventures (Rheinmetall, Baykar, Edgewing), and the operational launch of the GCAP program.

• Portfolio actions included the sale of the UAS business, acquisitions in cybersecurity (Axiomatics, SSH), and the agreement to acquire Iveco Defence Vehicles.

Financial highlights

• Book-to-bill ratio at 1.3x; group backlog increased to €45 billion as of June, covering over 2.5 years of production.

• Net result before extraordinary items was €273 million, up 44.4% year-over-year; reported net result at €542 million, reflecting a capital gain from the UAS sale.

• Group liquidity at €5.8 billion as of June 30, 2025, ensuring strong financial flexibility.

• S&P rating: BBB Stable; Moody's: Baa3 Positive; Fitch: BBB- Stable.

• Workforce increased by 5.1% to 61,265.

Outlook and guidance

• Full-year 2025 guidance for new orders raised to €22.25–22.75 billion; FOCF to €920–980 million; net debt target lowered to €1.1 billion.

• Revenue and EBITA guidance confirmed at ~€18.6 billion and ~€1.66 billion, respectively.

• Dividend payments increased from €0.28 to €0.52 per share.

• Guidance based on current geopolitical, supply chain, and macroeconomic assessments.